HM Revenue & Customs have introduced a VAT Initiative Campaign to try and encourage business owners to declare that they should be or should have been VAT registered at an earlier date or if they have any taxable turnover that they have not declared to HM Revenue & Customs.

HM Revenue & Customs are offering reduced penalties for those who come forward and declare that they should have been registered promptly, with possible time to pay options available depending on the business' circumstances. They are also keen to stress that if any business does not take advantage of this initiative then they are leaving themselves open to a HM Revenue & Customs investigation if they find a problem with possible larger penalties that will be payable in one lump sum regardless of the business' circumstances.

You must register for VAT if any of the following applies:-

• your VAT taxable turnover for the previous 12 months is more than £73,000 (the current VAT registration threshold);
• you think your VAT taxable turnover will exceed the threshold in the next 30 days;
• you exceeded a VAT threshold at an earlier point in time and have not registered for VAT;
• you take over a VAT-registered business as a going concern.

Important dates relating to the initiative are:-

30 September 2011 - the last day that a business can notify HM Revenue & Customs about their affairs to take advantage of the initiative.

31 December 2011 - the date the VAT registration form must reach HM Revenue & Customs.

If you have any questions regarding any of the above please contact either John Langlands or Lynne Vaughan on 01382 312140 or email info@amberaccounting.co.uk.

Alternatively click on the following links for more detail from HM Revenue & Customs.

http://www.hmrc.gov.uk/ris/vat/your-guide-take-part.pdf

http://www.hmrc.gov.uk/ris/vat/flowchart.pdf